CHAPTER A. GENERAL
This publication presents Input-Output Tables for 1995, which describe the interrelationships
among different industries in the Israeli economy.
The tables in the publication were prepared in accordance with the recommendations of the
System of National Accounts 19931 (henceforth SNA – 1993). The recommendations are
provided jointly by five international organizations: the United Nations, the International
Monetary Fund, OECD, the World Bank, and Eurostat. This system was unanimously
accepted by the Statistical Committee of the United Nations in March 1993. The purpose of
the recommendations is to standardize the System of National Accounts as a means for
economic analysis and international comparisons.
As part of SNA – 1993, the Handbook of Input-Output Table – Compilation and Analysis,
was prepared.2 The Handbook aimed to apply the integral presentation of the Input-Output
Tables together with the System of National Accounts, to expand special areas, and to present
existing and new methods for designing the tables.
The Input-Output Tables were developed by Professor Leonteif for the period 1919-1929 in
the United States, and published in 1936. Since then, Input-Output Tables have been
published in 90 countries. In Israel, the first Input-Output Tables were published in 1958.3
The introduction presents:
–
The structure of the Input-Output Tables;
–
The contents of the tables in the publication, of which the main ones are:
(1) Supply tables, which describe the sources available to the economy: local output
and imports.
(2) Uses tables, which present the interrelations among different industries in the
economy (intermediate uses), and among these industries and the final uses.
(3) Total coefficient tables, which enable calculation of the required output from
the industries, both directly and indirectly, for an output unit of a group of
products for final uses.
(4) Imports tables, which provide information on some of the supply sources of
goods and services in the economy. The tables present competitive and
complementary imports separately.
1
2
3
United Nations, World Bank, Commission of the European Communities, International Monetary
Fund, Organization for Economic Cooperation and Development. System of National Accounts –
1993. Brussels/Luxembourg, New York, Paris, Washington D.C., 1993.
United Nations. Handbook of Input-Output Table Compilation and Analysis. "Studies in
Methods," Series F, No. 74, New York, 1999.
Appendix 3, "Bibliography," lists all of the input-output publications in Israel.
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–
Main findings;
–
Sources: Outputs of industries in the economy and imports;
–
Final uses;
–
Comparison of main data in the Input-Output Tables with the data of the National
Accounts.
The tables are presented at basic prices, which are the cost prices that include subsidies but do
not include expenses for marketing, transport and taxes. These expenses appear on separate
rows.
The Input-Output Tables for 1995 include a list of 232 industries. However, in order to
maintain statistical confidentiality, this list is not published. The classification of industries is
based on the Standard Industrial Classification of All Economic Activities – 1993.1 This
publication presents the tables in aggregations of 14 and 65 industries.
A CD-ROM is attached to this publication, and includes all the tables appearing here as well
as all the tables in the 162-industry aggregation. The tables in the CD-ROM are presented
from left to right in order to enable users to work with the matrices.
1
CBS. Technical Publication No. 63. Jerusalem, 1993.
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CHAPTER B. STRUCTURE OF INPUT-OUTPUT TABLES
1. General
The Input-Output Tables presented here describe the interrelations among the industries
in Israel in 1995.
This system includes more detailed information than the current National Accounts,
which are published quarterly by the CBS, and presents the resources and uses series. The
SNA – 1993 recommends that the National Accounts data will be published annually
combined with supply and uses tables, and thus the Input-Output Tables will become an
integral part of the System of National Accounts.
When comparing the definitions and concepts of the current System of National
Accounts with those of the Input-Output Tables, the following differences should be
noted (see also details in Chapter H).
(a) The summaries of the final uses and the primary inputs in the margins of the
Input-Output Tables correspond mainly to the National Accounts. The columns
"Final Uses" in the uses tables correspond to the uses in the National Accounts
while the rows at the bottom of tables (from the row "Imports – C.I.F." to
"Other Value Added – apart from labour compensation") correspond to the
resources in the National Accounts.
(b) The National Accounts measure the net domestic product, meaning, the value
added of all the industries while the inter-industrial transactions, which are the
main concern in the Input-Output Tables, are not presented there.
(c) The National Accounts do not present the detailed connections between
resources and uses in each industry, meaning, the distribution of each industry’s
output by uses (consumption, capital formation and export). These connections
are emphasized in the Input-Output Tables.
2. Basic Definitions and Concepts in the Tables
Intermediate uses or intermediate products: These are sales from industry to industry,
meaning, the description of all transactions in quadrant I, "Intermediate Uses," refers to
the purchasing industry, which uses its inputs for production.
Final uses: Sales from the industry to the final consumer, meaning, for consumption,
capital formation or export. The use is final from the point of view of the purchaser.
Primary inputs: Inputs purchased from imports and value added. This refers to
purchases by the industries that appear in quadrant III of the table, such as imports, taxes,
labour compensation and return to capital.
Industry of origin: The industry that produces goods according to the definition of the
standard classification of industries and not the industry in which the establishment
actually producing the goods is classified by main activity.
Production industry: This is determined by a classification of establishments
(classification is done by the establishment’s main activity) and so the output includes
characteristic and secondary products.
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Competitive imports: Imported goods or services which have been defined as competing
with similar domestically produced goods (see Chapter D, Paragraph 8).
Complementary imports: The remaining imported goods and services, which were not
defined as competitive imports (see Chapter D, Paragraph 8).
Taxes on domestic output: This includes the taxes on production and taxes on products.
Taxes on production: The total taxes, excluding taxes on products, paid by companies
following the process of production, such as municipal taxes, taxes on wages, taxes on
buildings and land, business licenses, stamp tax and taxes on international transactions.
These taxes are not proportional to the value of the products or the services produced. In
the former Input-Output Tables there was no distinction between taxes on products and
taxes on production.
Taxes on products: Include taxes imposed on a unit of product or service at the time of
production, sale, import, export, transfer or use for own capital formation, as V.A.T., fuel
excise, purchase tax, and municipal tax on residential buildings.
Labour compensation: Includes all salary payments for which taxes must be paid
(before the taxes are deducted) that appear in the employee pay-list and also other labour
expenses (such as: employers contribution to National Insurance Institute and to industry
provident and training funds). Labour compensation is local, meaning, includes all the
persons employed, no matter if they are permanent residents or non-residents. Therefore
the wages also include labour compensation to workers from Judea and Samaria and the
Gaza Area, and to foreign workers. Labour compensation includes imputation for labour
compensation of self-employed persons. The imputation is estimated according to the
average labour compensation per employee in each industry except for the agriculture
industry, where labour compensation is imputed for employers according to the average
labour compensation per employee for the entire economy.
Other value added, which includes profits, depreciation, royalties and net financing
expenditure was obtained as the difference between the output of the industry and its total
expenditure.
Purchaser prices are prices that the consumer pays, and, therefore, they include
marketing expenses, transport and taxes paid, less subsidies received (net taxes).
Basic prices are cost prices for the producer. These prices include subsidies like
subsidies on public transport and water, and exports incentives, and do not include
marketing and transport expenses or taxes.
The term "price margins" includes marketing margins (marketing expenses), transport
margins (transport expenses) and tax margins (net taxes).
The tables in this publication are presented in basic prices and the margins appear on
separate rows. This method of presentation is suitable for economic analyses based on
coefficients that express the production technology. In the tables at purchaser prices each
cell includes the marketing and the transport margins.
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3. Method of Data Presentation and Contents of the Tables
The new system of Input-Output Tables, which was conducted according to the SNA –
1993 recommendation, is based on two groups of tables which are linked to each other:
supply tables and uses tables. The supply tables present the value of different products at
basic prices in each characteristic production industry and the total supply of products (of
import and domestic production) at basic and purchaser prices. The use tables mark the
value of production in each industry and the use of each product at basic prices and
purchaser prices.
The tables presented in this publication are:
–
–
–
–
–
Supply tables
Uses tables
Imports tables
Direct coefficient tables
Total coefficient tables
The data in the tables enable learning in depth the relations among products, production
industries, final uses by industry, gross domestic product by industry, etc.
The tables presented here were prepared at several levels of breakdown: aggregations of
232, 162, 65, 51 and 14 industries. The detailed aggregation of 232 industries is not
published for reasons of confidentiality. This publication presents two aggregations – of
14 and 65 industries. The 162-industry aggregation is included in the enclosed CD. For
each aggregate, some of the tables are presented in two versions for recording imports:
In version A: Imports are divided into competitive and complementary. (See Chapter D,
Item 8).
In version B: Data on imports are not divided, but appear on a single row as totals in the
primary inputs section.
Table 1 – Supply
The supply table presents data on the total resources available in the economy in a given
year, both from import and from domestic outputs. The table presents the resources by
groups of characteristic products manufactured in each industry. The data appear at basic
prices, which are cost prices that include subsidies but do not include the costs of
marketing, transport, and taxes. The total of resources at purchaser prices is obtained by
adding the marketing and transport margins and net taxes to the total supply of goods at
basic prices. Data on imports are presented at C.I.F. values including transport and
insurance. However, they are adjusted to the F.O.B. values. This means that the imports
value includes expenses for transport and insurance in foreign companies that are
included in imported services while expenses for transport and insurance in Israeli
companies are not included in imports and are deducted in a special column in the tables.
The part of the table that presents domestic output by groups of characteristic products
manufactured in every industry corresponds to the "make matrix" in the previous version
of the Input-Output Tables. Most of the domestic output data are concentrated diagonally
in the matrix, because every industry mainly manufactures specific goods or services. In
many of the cells of the matrix the data value is "0." Examination of the output of other
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chemicals industry in the 65-industry aggregation (the total domestic output amounted to
NIS 3,268 million), indicates that 87% of the output derive from the industry itself, and
the remaining 13% were manufactured in other industries. For example: NIS 156 million
(5%) derive from industrial chemicals, NIS 57 million (2%) – from paper and cardboard,
NIS 24 million (1%) – from basic metal, etc. The columns in the matrix of domestic
output describe the characteristic and other products manufactured by each industry. The
rows in the matrix present by industry the distribution of manufacturing for groups of
characteristic products.
Tables 2-3 – Uses
These tables present the industries’ sales whether they are intermediate inputs for the
production process or for final use (for consumption, capital formation, export or a
change in inventories). The rows in the tables detail the sales of groups of characteristic
products for various uses, and the columns display the industrial inputs by groups of
products.
These tables consist of four parts, hence "quadrants."
Purchasing industries
Selling industries
Intermediate uses
(inputs)
Final uses
I
II
III
IV
Intermediate uses (inputs)
Primary inputs
Output –
grand total
Inputs – grand total
Quadrant I (upper left) describes the transactions between industries of the economy (in
columns) and groups of characteristic products of the economy (in rows), and serves as a
basis for calculating direct and total coefficients.
Quadrant II (upper right) includes sales by groups of characteristic products for final
consumption (consumption, capital formation and export) – outside the production
system.
Quadrant III (lower left) describes the expenditure of industries on imports and
payments to production factors (return to capital, labour compensation, taxes and
subsidies).
Quadrant IV (lower right) describes primary inputs that are sold to final consumers –
imports for capital formation, for private consumption of households, for collective or
individual general government consumption, etc.
The data appearing in quadrants I and II are at basic prices (which include subsidies but
not taxes or transport and marketing margins). The value of competitive imports included
in quadrants I and II is the C.I.F. value, including customs duties on competitive imports.
The other taxes on imports are included in the row "net taxes on imports" in quadrants III
and IV of Table 3. The Transport margin appears on the row "transport, storage and
communications," and includes all transport margins of the industry's inputs in the
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column (inputs from import and domestic production). The commerce margin appears on
the row of trade and repairs, and includes commerce margins of the industry's inputs.
Above the summary of the output in economy appears an adjustment of C.I.F. imports
values to the F.O.B values.
This table is presented in the two formats of imports registration for each of the two
aggregations in this publication.
Table 4 – Direct Coefficients
Direct coefficients are calculated for the part of the table that includes quadrants I and III,
which describe the production system. For each column of values, a column of
percentages (coefficients) is calculated so that the total of each column (industry's output)
adds up to one (1.00). These coefficients enable to determine to which extent will the
producers of a specific industry have to increase the inputs they purchase directly from
other industries – from the domestic market and from abroad (the component of direct
imports) – in order to increase their output by a certain amount.
Table 5 – Total Coefficients
This indicates the industry's output necessary to produce a unit of output of a group of
products for final uses. This table presents the direct and indirect influences of the
changes in the final uses (private consumption, general government consumption, capital
formation, export) throughout the economy.
The mathematical formula for calculating the total coefficients is:
D * (I-AD)-1
when
D = The matrix determined from the part of domestic output of the supply table and
that expresses the output distribution of groups of products among industries.
I = Unit matrix
A = Direct coefficients matrix (quadrant I of the uses table)
The total coefficients table is based on
(a) Fixed input-output ratios;
(b) The relative share of the characteristic products in the total output as was in the
year to which the table refers.
Tables 6-8 – Imports – C.I.F.
These tables detail the imports data in Table 3 by industries selling abroad (industry of
origin) and by industries purchasing in Israel (industry of destination). The tables present
three matrices of imports: a matrix of the total imports, a matrix of the complementary
imports and a matrix of competitive imports.
Table 9 – Total Coefficients of Imports
This table is derived from direct coefficients of imports and provides a breakdown by
industries of the imports column in Table 10. It provides information on the total imports
component, by industry of origin. It appears only in version B – of undistributed imports.
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Table 10 – Total Coefficients of Primary Inputs
This table is derived from Tables 4 and 5. By definition, the sum of final uses produced
by the industries equals the total primary inputs.
Therefore, it is possible to see each final product as composed of primary inputs only.
This table presents for each industry a percent distribution of primary inputs.
This table is presented here only in version B, where the imports are not divided. It
should be noted that in version A, where the imports are divided into competitive and
complementary, this table has no economic meaning.
Table 11 – Destinations of Output, by Final Use
This table enables the calculation of the output required to produce goods and services
for final use (both directly and indirectly).
Thus, for example, it is possible to learn from the table that the private consumption of
households required from industry B (manufacturing) an output of NIS 37,965 million,
("private consumption" column, row 2 in the table 14-industry aggregation) while the
direct contribution of this industry to the private consumption of households amounted to
only NIS 22,078 million (Table 3, 14-industry aggregation, version B, "private
consumption – households" column, row 2). The table is obtained by multiplying the
final use matrix – the second part of Table 3 – by the total coefficient matrix (Table 5,
version B).
Tables 12-15 – Primary Inputs in Private Consumption, Fixed Capital Formation,
Exports and Consumption of Non-residents, by Industry, at Absolute Numbers and
Percentages
These tables present the components of primary inputs in final uses.
The tables are obtained by multiplying the final uses matrix (quadrant II of the uses table)
by the matrix of total coefficients of primary inputs (Table 10, version B).
The data were calculated using the total coefficients and the final uses, at a detailed level
of 232 industries, and were summed for the different aggregations.
For the same reasons regarding Table 10, these tables are presented only in version B, of
undistributed imports in the two aggregations.
Tables 16-19 – Private Consumption of Households, Fixed Capital Formation,
Imports and Consumption of Non-residents, at Basic Prices and Purchaser Prices –
Absolute Numbers and Percentages
The source of these tables is a "balancing form" (see Chapter G), in which a calculation
was made to convert the purchases data of industries and final uses from purchaser prices
(as obtained from different sources) to basic prices (the difference between them is the
transport and marketing margins, taxes and subsidies).
The four tables are intended to explain how to convert the values from purchaser to basic
prices and vice versa.
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4. The Structure of the Tables by Industries
As noted above, Input-Output Tables of the Israeli economy are constructed as a matrix
of selling industries (by aggregations of characteristic products). The classification of the
industries in the 1995 Input-Output Tables usually corresponds to the classification of the
CBS1 at the level of category.
At higher-specification levels there are a few deviations, some of which are noted below.
As in the standard classification, the unit classification in the Input-Output Tables is not
the group of products but the "establishment," which is classified by main activity.
The use of input-output coefficients for forecasts requires an assumption of fixed inputoutput coefficients. Such a condition demands a definition of activities by homogeneous
industries and causes a deviation from the definitions of certain industries by the standard
classification. In certain cases, the analysis requires a deviation from the accepted
definition of output. For example, the trade industry is defined in the Input-Output Tables
as an industry that sells only marketing services, and the goods sold by it are recorded in
the tables as sold directly from the production industries (agriculture, manufacturing or
imports) for different uses (intermediate or final).
The classification of the agriculture industry in the Input-Output Tables is based on
homogeneous products or groups of products including services provided to them. In the
standard classification the group (minor industry) "mixed farming" includes products of
all groups, and therefore the use of this classification is not efficient for classifying
agriculture in Input-Output Tables. The industry also includes gardening, which in the
previous tables was included in personal services industry.
The classification of manufacturing industries in the Input-Output Tables generally
corresponds to the standard classification of industries except in a few cases where a
number of industries have been merged into a single one for reasons of confidentiality.
The criterion used to divide construction to groups (minor industries) was destination
(residence, manufacturing, agriculture, road construction, etc.), and not stages of process
– development works, structure works, constructing installations of water, electricity, air
conditioning, building carpentry, etc. – which are the criterion for classification of groups
within the industry in the standard classification.
The services industry was divided to services provided on a commercial basis and those
provided by the general government sector institutions or non-profit organizations. In the
standard classification, groups (minor industries) are classified according to type of
services and not according to the sector which renders the services (at the 14- and 65industry aggregation, the services sector is subdivided according to the definitions of the
standard classification).
The Input-Output Tables include three industries that are not defined in the standard
classification – ownership of dwellings (701), general expenses (999) and imputed bank
services (994).
1
CBS. Standard Industrial Classification of All Economic Activities: 1993, Technical Publication
No. 66. Jerusalem, 1995.
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Ownership of dwellings industry: According to the new international definitions, this is
a "fictitious" industry, which is added to the other industries, and includes the imputation
of households' housing services for the use of dwellings whether or not owned by them.
General expenses industry was defined as an industry that sells to the industries
(appearing on the rows) general expenses, such as travelling expenses, per-diem expenses
and other miscellaneous expenditures that could not be classified separately. For some
industries the purchases include revisions intended to adjust resources and uses.
The imputed bank services industry (994), which is not divided, is the imputation of
services for bank loans, which is calculated as the difference between interest received
and interest paid by banks. The output of this industry is "0," and therefore, its value
added is negative.
5. Differences between the Structure of the Tables for 1995 and the
Structure of the Tables for Previous Years
5.1 Classification: The 1995 tables were prepared on the basis of the new classification
of economic industries, The Standard Industrial Classification of All Economic
Activities – 1993.1 This classification is more detailed than the one used as a basis
for the previous tables. The 1995 tables list 232 industries, whereas the 1988 tables
listed 191 industries (see Appendix 1). The new industries are mostly in the areas of
manufacturing and business services.
5.2 Feed centres: These are units that do not exist as businesses, but as auxiliary units
in agricultural farms. In the 1988 tables, all of the activities of feed centres that
prepare concentrated fodder for livestock were included in manufacturing, and the
fodder was purchased from manufacturing industries by livestock industries. In the
present tables, however, the activities are defined as manufacturing in the framework
of agriculture. The inputs, which are mainly imported, are included in agriculture,
i.e., fodder purchases by agricultural industries from manufacturing declined.
5.3 Electricity and water: In the previous tables sales of electricity and water to all
destinations were registered according to a uniform average price. For industries
where the producers actually paid lower prices than average, the difference was
recorded as receipt of subsidies; and for those that paid more than the average price,
the difference was recorded as a tax payment. In the present tables, sales of
electricity and water for all purposes were recorded at their full price, and no
subsidies or taxes were imputed. As a result of this change, subsidies and taxes
decreased in the industries where they were imputed in the previous tables. The
prominent difference is the component of subsidies for local agricultural output,
which is lower in the current tables than in the previous ones. In addition, the
proportion of the direct component of water declined within agricultural inputs.
1
CBS. Technical Publication No. 63. Jerusalem, 1993.
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5.4 Trucks: In the previous tables the input of this industry included both paid truck
services and own-account truck services of industries such as trade and
manufacturing. In the present tables, following the new international
recommendations, own-account truck services remained in the industries to which
they belong, and the output of the industry included only paid truck services, as
measured in the Trade, Services, Transport and Communication Survey – 1995.1 As
a result, the output of the industry declined in comparison with the previous tables,
and purchases of all industries from the trucks industry diminished accordingly.
5.5 Ownership of dwellings: In the previous tables, all housing services (imputed and
rental) were recorded as a direct product of the private consumption in quadrant IV
of the table. In the present tables, following the new international definitions, this is
a "fictitious" industry that is added to the industries in the economy, and includes
imputation of housing services provided to households for the use of dwellings
owned or not owned by them. The industry sells its output to households and to
foreigners. As a result of this change in the method of recording, the added value of
final uses, "expenses for final consumption of households" changed to "0," and in
the intermediate uses the other added value of this new industry was added.
5.6 Definition of rental: In the previous tables, rental was part of the other added value
in each industry. In the current tables, following the new international definitions,
rental was defined as purchase from the real-estate industry (700). As a result, this
component of the product diminished in all industries, while the share of inputs in
the same item increased. Comparison of the 1995 tables with the previous ones
clearly reveals the effect of the revision on the trade and restaurants industries,
where rental is prevalent.
5.7 Employers tax and VAT in the financial sector: In the previous table, these
components were included in the labour compensation of public sector services,
non-profit organizations and financial institutions – in contrast with the System of
National Accounts, where they were defined as taxes. In the current tables, by
contrast, they were considered as taxes, as in the System of National Accounts.
Therefore, here the item including these taxes within the product at basic prices is
small compared with the tables of previous years.
5.8 C.I.F./F.O.B. adjustment of imports: In accordance with the guidelines of SNA –
1993, imports should be recorded in F.O.B. values just as exports are. Thus, imports
should include the costs of transport and insurance in foreign companies, but not the
costs of these services by Israeli companies. Since the imports value of the goods is
listed in the customs records as CI.F. values, and since it is impossible to deduct the
value of transport and insurance services for Israeli companies from each of the
goods, an overall adjustment is made in the tables for water transport, air transport
and insurance in order to convert C.I.F. to F.O.B. values.
1
CBS. "Current Statistics" No. 14/1999. Jerusalem, 1999.
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CHAPTER C. MAIN FINDINGS
The Input-Output Tables presented in this publication represent the inputs and the outputs,
resources and uses, and their components in the industries in 1995. From these tables one can
learn about the structure of the Israeli economy, about the relations among industries and
between them and final uses, about the proportion of imports in the resources available to the
economy and the proportion of each industry in the total output.
A comparison between findings of 1995 Input-Output Tables and findings of tables for
previous years (1977/78, 1982/83, 1988, 1990 and 1992) is presented below according to
several main characteristics of industries – output, product, proportion of final uses and
proportion of imports in inputs.
1. The Industrial Output and Product
The analysis of the distribution of output among industries as presented in Table A below
shows that there were changes in the share of the various industries of the economy in the
total output, compared to 1992. The share of the manufacturing output decreased and
reached 30% compared to 37% in 1977/78 and about 32% in 1992. The share of the
construction industry amounted to about 9% of the total output in the economy, similar to
1992. The share of agricultural output decreased to 3% in 1995, compared to 6% in
1977/78. The output of trade, accommodation services and restaurants continued to
increase and amounted to nearly 8.5% of the output. The share of financial and business
services also increased to 13% of the domestic output. The rest of industries showed
almost no change in 1995 compared to their share in the total output in the economy in
1992. The output of public services consisted 20% of the total output in the economy,
respectively. To make the table comparable to the data of previous years the output of the
ownership of dwelling industry was not considered.
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TABLE A.- THE INDUSTRIAL OUTPUT (1)
1977(2)
1982(2)
1888
1990
1992
1995
Percentages
Total
100.0
100.0
100.0
100.0
100.0
100.0
5.6
5.0
3.8
3.4
2.8
2.7
37.4
35.1
34.1
34.1
32.0
29.7
32.5
33.5
30.4
30.6
29.2
26.5
Construction
7.2
7.5
6.1
7.0
8.7
9.1
Electricity and water
1.8
2.4
1.7
2.0
2.0
1.9
Trade, accommodation
services and
restaurants
7.0
7.0
8.0
7.6
7.5
8.4
Transport and
communications
8.0
7.6
8.1
8.0
8.2
8.1
Financial and business
services
7.3
9.1
11.1
11.2
11.8
12.8
Public and community
services(3)
21.3
21.7
20.4
20.1
20.2
20.4
Personal and other
services(4)
3.0
3.1
4.7
4.7
5.0
5.0
General expenses
1.4
1.5
2.0
1.8
1.8
2.1
Agriculture
Manufacturing
Manufacturing
(excl. diamonds)
(1)
(2)
(3)
(4)
The "Total" row of Table 2: "Uses."
Budget years – 1977/78, 1982/83.
Excluding education and health services provided on a commercial basis.
Including health and education services provided on a commercial basis.
The distribution of the domestic product among industries (see Table B, below) shows
that the proportion of manufacturing in the domestic product dropped from 22.5% in
1992 to 20-21% in 1995. The share of this industry, excluding diamonds, dropped from
22% in 1992 to 20% in 1995. The proportion of the construction industry rose to a rate of
9-10% of the product. The proportion of the financial and business services industry
amounted to 17% in 1995. As in the output, in the product too, the share of the
agricultural industries dropped from 7% in 1977/78 to only 3% of the total product in
1995. As in Table A, the product of the ownership of dwellings industry was not taken
into account in 1995 in order to make the data comparable to those of previous years.
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TABLE B.- THE INDUSTRIAL PRODUCT(1)
1977(2)
1982(2)
1988
1990
1992
1995
Percentages
Total
100.0
100.0
100.0
100.0
100.0
100.0
6.7
5.2
4.1
3.7
3.1
2.6
26.8
24.7
25.0
23.6
22.5
20.4
23.5
23.5
23.2
22.9
21.9
19.8
Construction
8.0
7.7
6.4
7.3
8.7
9.5
Electricity and water
1.6
1.8
2.0
2.1
2.0
2.0
12.3
12.2
12.3
11.6
11.2
10.8
Transport and
communications
9.4
8.3
10.1
9.9
9.8
9.9
Financial and
business services
11.9
15.0
17.6
17.0
18.3
17.4
Public and community
services(3)(4)
21.1
26.1
24.2
25.1
24.4
24.5
4.5
4.4
6.3
6.6
6.6
6.4
Imputed banking services
-6.3
-7.5
-8.1
-7.2
-6.6
-3.9
Subsidies to industries(6)
5.1
2.6
1.1
0.7
0.4
0.2
-1.1
-0.5
-0.9
-0.4
-0.4
0.3
Agriculture
Manufacturing
Manufacturing
(excl. diamonds)
Trade, accommodation
services and restaurants
Personal and other
services(5)
General expenses
(1) The sum of the labour compensation and the other value added – from Table 2 – "Uses."
(2) Budget years – 1977/78, 1982/83.
(3) As of 1995, does not include employers tax and taxes on wages, which are defined as taxes.
(4) Excluding health and education services provided on a commercial basis.
(5) Including health and education services provided on a commercial basis.
(6) The subsidy component in the government loans to the business sector (excluding subsidies to
exports classified by industry).
2. Composition of Uses
Intermediate uses are inputs in the production of final and intermediate products. In 1995,
they formed 36% of the domestic output. The total coefficients indicate the final
destination of the intermediate products and facilitate the calculation of the indirect
proportion of each final use in the output of the industry. Tables C and D below
summarize this calculation for the private consumption and export for the years 1977/78,
1982/83, 1988, 1990, 1992 and 1995. The percentages in Tables C and D were calculated
- (30) -
from Table 11 – "Industrial Output Destinations, by Final Use." The percentages of the
direct component were calculated from Table 2 – "Uses."
Industrial Output Destinations, by Final Use
In 1995, about 36% of the total output in the economy were designated for private
consumption compared to 34% in 1992 and 35% in 1990.
In 1995, about 67% of the agricultural output were designated, both directly and
indirectly, for private consumption, compared to 68% in 1992. In the manufacturing
industry (excluding diamonds) 28% of the output were designated for private
consumption, compared to 33% in 1992.
TABLE C.- PRIVATE CONSUMPTION (INCLUDING PRIVATE NON-PROFIT INSTITUTIONS),
AS PERCENTAGE OF THE TOTAL OUTPUT, BY SELECTED SELLING INDUSTRIES(1) (2)
1977(3)
1982(3)
1988
1990
1992
1995
Total
Thereof: direct
33.3
33.1
36.7
34.8
33.5
36.0
21.1
18.4
22.2
21.3
20.8
23.8
Agriculture
Thereof: direct
55.0
60.1
68.0
64.0
67.9
66.6
22.0
21.9
30.2
27.3
31.0
31.9
Manufacturing
Thereof: direct
31.6
33.5
34.3
31.4
29.9
27.6
17.8
17.9
19.8
17.8
17.2
15.9
36.4
35.1
38.5
34.8
32.7
30.9
20.5
18.7
22.2
19.8
18.9
17.9
27.9
30.9
37.7
38.1
37.5
41.7
20.5
20.2
25.0
27.5
26.2
27.8
Manufacturing (excl. diamonds)
Thereof: direct
Transport and communications
Thereof: direct
(1) The output component of each industry was calculated from Table 11 – "Industrial Output
Destinations, by Final Use."
(2) The direct component in all industries was calculated from the data of Table 2 – "Uses."
(3) Budget years – 1977/78, 1982/83.
The share of exports in the total output dropped from 24% in 1992 to 23% in 1995. The
share of the agricultural industries decreased from 28% in 1992 to 26% in 1995. The
share of exports in the manufacturing industry increased from 43% in 1992 to 47-48% in
1995. The share in this industry excluding diamonds increased from 38% in 1992 to 41%
in 1995. In the transport and communications industry the share of exports dropped from
41% in 1992 to 37% in 1995.
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TABLE D.– EXPORTS (INCL. CONSUMPTION OF NON-RESIDENTS), AS PERCENTAGE
OF TOTAL OUTPUT, BY SELECTED SELLING INDUSTRIES(1) (2)
1977(3)
1982(3)
1988
1990
1992
1995
Total
Thereof: direct
31.2
22.9
25.9
17.2
26.8
18.2
26.3
17.6
24.4
16.8
23.4
16.4
Agriculture
Thereof: direct
41.7
32.7
37.6
28.1
29.8
21.6
31.7
22.4
28.5
20.4
25.9
19.3
Manufacturing
Thereof: direct
44.0
33.7
40.7
29.1
45.3
35.7
45.2
35.5
43.1
34.4
47.5
39.1
37.5
36.7
39.1
39.4
37.8
41.4
25.7
24.8
28.4
28.7
28.3
32.0
57.5
50.4
50.8
42.5
45.8
36.6
45.0
37.0
41.0
32.8
37.0
28.7
Manufacturing
(excl. diamonds)
Thereof: direct
Transport and communications
Thereof: direct
(1) The output component of each industry was calculated from Table 11 – "Industrial Output
Destinations, by Final Use."
(2) The direct component in all industries was calculated from the data of Table 2: "Uses."
(3) Budget years – 1977/78, 1982/83.
3. Primary Inputs in Private Consumption and in Exports
Tables E and F below present the distribution of primary inputs (imports, taxes on net
domestic output and gross domestic product) in private consumption of households and
exports in the years 1977/78, 1982/83, 1988, 1990, 1992 and 1995. The share of imports
in the primary inputs in private consumption of households increased from 25% to 27%
in 1995. The net taxes (with the deduction of subsidies) on domestic output increased in
1995 to 13.6% compared to 12.4% in 1992 following the decline in the subsidies. The
gross domestic product (at basic prices) decreased in 1995 to a level of 59%.
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TABLE E.– PRIMARY INPUTS IN PRIVATE CONSUMPTION(1)
Percentages
1977(2)
Total
Imports (incl. net taxes)
Thereof: indirect imports
Taxes on domestic output
Subsidies
Gross domestic product
(at basic prices)
1982(2)
1988
1990
1992
1995
100.0
100.0
100.0
100.0
100.0
100.0
31.0
32.5
26.3
25.8
25.3
27.2
17.6
14.9
12.0
11.7
10.2
10.4
15.7
10.0
13.2
13.7
14.2
14.7
-11.7
-4.4
-3.0
-2.0
-1.8
-1.1
65.0
61.9
63.5
62.5
62.3
59.2
(1) Source: Table 10 – "Total Coefficients of Primary Inputs."
(2) Budget years – 1977/78, 1982/83.
The proportion of imports in total exports dropped in 1995 to 44% compared to about
43% in 1992. The share of gross domestic product in exports rose from 57% in 1992 to
54% in 1995. The net taxes on domestic output increased to 2%. The share of imports in
the agricultural exports dropped to 19% in 1995 compared to 20% in 1992. The
proportion of imports in the manufacturing exports (excluding diamonds) increased to
40% in 1995 compared to 37% in 1992. The component of gross domestic product (at
basic prices) in the manufacturing exports (excluding diamonds) decreased from 63% in
1992 to 59% in 1995.
TABLE F.- PRIMARY INPUTS IN EXPORTS(1) (2)
Percentages
1977(3)
Total
Imports (incl. net taxes)
1988
1990
1992
1995
100.0
100.0
100.0
100.9
100.0
100.0
44.3
41.3
41.3
44.4
42.6
43.8
0.4
0.0
0.8
1.3
0.8
2.0
55.3
58.7
57.9
54.3
56.6
54.2
Net taxes on domestic output
Gross domestic product
(at basic prices)
1982(3)
(1) Source: Table 10: "Total Coefficients of Primary Inputs."
(2) Incl. export of goods and services abroad, and to Judea and Samaria and the Gaza Area, as well
as consumption of non-residents.
(3) Budget years – 1977/78, 1982/83.
Table G below presents the distribution of primary inputs in export of goods and services
(including export abroad and to Judea and Samaria and the Gaza Area) and the
consumption of non-residents, separately. The consumption of non-residents includes
expenses of tourists in Israel, foreign workers and diplomats. The component of gross
domestic product (at basic prices) in the consumption of non-residents is high compared
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to the rest of exports: 81% and 51% respectively. However, the share of imports in the
consumption of non-residents –14% – is low compared to 48% regarding the rest of
exports.
TABLE G.- PRIMARY INPUTS IN EXPORT OF GOODS AND SERVICES
AND CONSUMPTION OF NON-RESIDENTS
1995
Percentages
Thereof:
Exports –
total
Export of goods and
services(1)
Consumption of nonresidents
100.0
100.0
100.0
Imports
(incl. net taxes)
43.8
47.6
14.2
Net taxes on
domestic output
2.0
1.3
4.7
54.2
51.1
81.0
Total
Gross domestic
product (at production
factor prices)
(1) Including export to Judea and Samaria and the Gaza Area.
4. The Share of Direct and Indirect Imports in the Industrial Output
Table H below presents data on the share of direct and indirect imports as a percentage of
the industrial output for 1977/78-1995. The data show that the share of direct imports in
the manufacturing industry (excluding diamonds and fuel) amounted to 26% of the
industry's output in 1995. This was the highest level in all the years.
In the transport and communications industry the proportion of direct imports dropped to
19%. The share of direct imports in the electricity and water industry increased in 1995 to
a level of 17%. The share of the total imports in the industry increased from 25% in 1992
to 27% in 1995.
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TABLE H.–- THE TOTAL AND DIRECT IMPORTS AS PERCENTAGE OF
INDUSTRIAL OUTPUT(1)
1977 (2)
1982 (2)
1988
1990
Agriculture
Thereof: direct imports
24.5
4.0
22.3
2.0
19.0
1.9
20.5
1.7
18.7
2.1
21.3
2.8
Manufacturing
Thereof: direct imports
50.8
37.3
44.8
31.3
41.8
30.1
43.9
32.4
42.2
30.1
45.5
34.9
35.6
37.1
34.9
35.4
34.8
37.9
20.1
21.3
22.2
22.2
22.3
25.6
Construction
Thereof: direct imports
27.7
7.4
24.3
6.3
22.0
6.2
18.2
5.4
21.6
5.4
21.7
6.8
Electricity and water
Thereof: direct imports
35.8
2.3
31.4
7.4
26.2
17.7
33.0
13.8
25.3
13.7
27.0
17.1
Transport and communications
Thereof: direct imports
35.1
26.3
32.2
24.0
24.1
18.3
27.1
20.7
25.0
20.1
24.3
19.1
Manufacturing
(excl. diamonds and fuel)
Thereof: direct imports
1992
1995
(1) The source for data on the share of total imports – Table 10: "Total Coefficients of Primary
Inputs." The source for data on the share of direct imports – Table 4: "Direct Coefficients."
(2) Budget years – 1977/78, 1982/83.
- (35) -